The party that is liable for the loss is the BANK. This is because, the bank is liable for forged checks, if it fails to verify the signature on the check very well. It is written in the law that a payor bank that pays a check with a forged payee signature has paid a check that is not properly payable and is liable to its customer.
Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Answer:
Explanation:
Owning a franchise has the following main advantages:
1) A franchise owner gets valuable help throughout the lifespan of the business. Upon acquiring a franchise, the business owner receives a continuous training and assistance necessary for marketing and management.
2) Owning a franchise comes with a low rate of failure. A franchise comes with an established business concept that is already successful in the market which assures the owner of better chances of success compared to starting up an independent business.
Dividends that were paid last year = $200
Retained earnings = $522
Net Income = Retained earnings + Dividends paid = 200+522 =722
Tax rate was 38%.
Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52
Interest expense= 624
Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52
Earnings before interest and tax (EBIT) = 1,788.52
